Find the interest earned on an investment with a principal = $200, interest rate = 6 % per year and time = 3 years.

$236

$238.20

$36

$560

Question

Find the interest earned on an investment with a principal = $200, interest rate = 6 % per year and time = 3 years.
 
   
$236
 
   
$238.20
 
   
$36
 
   
$560

serenity74 · Answer

@Abhisar @Compassionate @Elsa213 @inkyvoyd @mathmale pls help this kid, I am trying but nothing is going through my head atm. Sorry for bothering you guys :(

mathmale · Answer

@SirFambrini:  Let's assume that this situation involves compound interest.  If that's the case, then what is the formula for the AMOUNT of $ that will have accumulated, with annual compounding, after 3 years?

texaschic101 · Answer

I = PRT
P = 200
R = 6% = .06
T = 3
now plug into the formula and find I...the interest

mathmale · Answer

Two approaches:

1)  Assuming simple interest:  This is the approach used by TexasChic

2)  Assuming compound interest:  See my comments, above.

Have you any clue regarding which assumption you're supposed to make?

By the way, welcome to OpenStudy!

mathmale · Answer

@SirFambrini:  When you post a problem here, as you did this one about interest earned, please involve yourself as much as you can in the discussion, so it's not just two or more possible helpers talking among themselves.

I'd suggest you assume that this problem involves simple interest, and thus suggest you follow the approach presented by @texaschic101. 

Good luck, best wishes.